New Delhi: A Parliamentary committee has asked the government to allow Indian Oil Corporation Limited (IOCL) to bid for acquiring stake in state-run Hindustan Petroleum (HP) and Bharat Petroleum (BP) or keep Reliance Industries out of the race of Indian petro industries.

The Parliamentary Standing Committee on Petroleum and Chemicals, headed by Mulayam Singh Yadav, in its report tabled in Parliament on April 24 asked government to reconsider its decision of debarring IOCL from the bidding process.

"Alternatively, they (government) should also enforce similar conditions on Reliance Industries Ltd participating in the bidding process of IPCL since if they are successful in obtaining the share of IPCL, they will almost have 100 per cent monopoly in petrochemicals sector because other (public sector undertaking) PSUs of this sector are sick with negligible contribution," the Committee said.

Expressing strong reservation on government view that IOCL participation in bidding process of acquiring stake in BPCL and HPCL would create a situation of monopoly, the Committee said, "the purpose of disinvestment is to obtain maximum price for the government share. In this process, in order to ensure a competitive and fair bidding there should not be any restriction for any company".

The Committee further commented that, "It is surprising that on one hand the government treat IOCL as flagship company for refining and marketing and on the other hand they are preventing them from participating in the bidding process of similar type companies under the pretext of preventing monopoly."

PTI